The Following Data Show the Relationship Between the Number of Drivers

question 181

Multiple Choice

The following data show the relationship between the number of drivers who leave for work at 8:00 a.m. ,their average commute times,and their marginal benefit associated with the commute times.
-Refer to the data above.Suppose that a toll is imposed in the following way: leaving between 8:00 a.m.and 9:00 a.m.costs $5 per driver,while after 9:00 a.m.the toll is zero.One can predict that __________ drivers will leave after 9:00 a.m.

• A) 100
• B) 200
• C) 300
• D) 400
• E) 500

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Definitions:

Regulatory Commissions

Official bodies or organizations responsible for the control and supervision of specific industries or fields, ensuring compliance with laws and regulations.

Rate Increase

An adjustment in the price or cost of a service or product, typically an upward revision, by a company or a regulatory body.

Pricing Constraint

Factors that limit the flexibility in setting prices for products or services, including costs, competition, market demand, and regulatory requirements.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of the operation grows.